Commercial Lease Commission Structure

[Matt Murphy]

Hello All - I have been surfing this site for little over year. It's a great resource and time killer. I am currently employed with a small developer/construction/management group. We have a property in NC that is a mixed use of 60 apartments above with 10,000 sq.ft of commercial below. Tenants are responsible for TI and we will perform all design and build outs. So with that said, I am responsible for leasing the 10k sq/ft of commercial. It will take 5-7 months for the design, permit and build out phase for each tenant. Our CO will be Sept. 2014. Which means I need to have tenants signed by the end of April for a September move-in. I have structured a deal where I will receive X% of my commission based on when I initially have the tenant sign the lease. Then I have a backend with the same concept, X% of my commission based on when they move in. The later in the year the lease sign or move-in takes places my commission is reduced by X%. So for example if I sign a tenant Q1 2014 I will receive 100% of X% of my X commission rate. Then I will receive 100% of my X% of my X commission rate for Q3 2014 move in. All of that to prepare for my question! I am trying to determine what ratio of my commission I should allocate for each goal (lease sign and lease move-in). Should I weigh the signing of a tenant heavier since I have a 3 month window to secure 100% of my commission or should I base more of my commission on the move-in process? If any of this makes sense at all....I would love to get some input!